Abu Dhabi slipped 1.1 percent, easing from a near four-year high on Wednesday. Aldar Properties dropped 2.5 percent, as investors were disappointed after the firm this week missed estimates with a 28 percent fall in second-quarter profit, which it blamed on a revaluation of properties related to its retail portfolio.

First Abu Dhabi Bank also fell 2.4 percent. FAB shares have gained nearly 37 percent this year, fuelled by strong earnings and a move to expand in the Saudi market.

In neighbouring Dubai, the index dropped almost 1 percent on selling in lender Emirates NBD which declined 2.9 percent. Contractor Arabtec also dropped 2.5 percent, after opening higher as it reported a 24 percent jump in quarterly profit.

Saudi stocks were down 0.4 percent, as sharp swings in oil prices hit sentiment. Oil prices were higher on Thursday, but fell over 3 percent on concerns about a trade dispute between the United States and China.

The ongoing trade war is rattling global markets and investors fear any slowdown in the world's two largest economies would slash demand for commodities.